At the upcoming BRICS summit Russia plans to introduce a new international financial system designed to bypass reliance on the US dollar and Western-controlled institutions, according to reports from Reuters.
The proposed system, based on blockchain technology and digital tokens backed by national currencies, aims to offer a secure and efficient alternative for international transactions between BRICS nations.
The platform would allow member countries, including Brazil, India, China, and South Africa, to settle payments without the involvement of the US dollar, with Moscow positioning the system as resistant to Western sanctions.
The plan also includes the creation of a ‘BRICS Clear’ platform for settling trade in securities and encourages the development of a common rating methodology among BRICS nations.
Russian Finance Minister Anton Siluanov previously announced the need for alternatives to the current Western-dominated financial system, citing political pressure and sanctions as reasons for change.
While specific details of the new system remain unclear, Russia has been actively reducing its reliance on the dollar in international transactions, especially with key trading partner China.
As the BRICS summit approaches, Moscow hopes to strengthen financial cooperation between member nations, with over 30 countries, including Türkiye, reportedly interested in joining the bloc.
Image credit: Niconor Brown
